unit size/lateral directions

I've noticed on all the maps I've seen pertaining to the horizontal wells drilled that the laterals all go nortwest or southeast. some go over a mile in those directions. Would like to learn why? Is it because of how the shale formation is laying? Also. does this mean that the unit size ,whether 640 acres,or 1280 acres, will be a long rectangle,as opposed to a square unit? Would royalties only go to the landowners within that unit?  Could your land be only a few thousand feet directly east of the well & not be part of it?

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Permalink Reply by porkchop on January 27, 2012 at 2:43am

I have a question.  On Go Marcellus we have seen maps and ODNR permit information regarding well locations etc. I’m thinking of a recent map which showed now 3 wells in Harrison County. I have also heard discussion regarding the number of wells per “pad”, with recent discussion around 4-8 per pad.  My question is this:  If a driller creates say 6 per pad, is that truly 6 different wells, requiring 6 different permits, each with its own production numbers and royalty accounting Or is the entire cluster on the pad viewed as one well?  And depending on that answer, is the Buell well a pad with just one horizontal and one vertical well?    

Permalink Reply by Brian Powers on January 27, 2012 at 4:23am

Porkchop and Utica -

The well pad concepts, metering and reporting methods  that are stated in your posts are analagous to the offshore world, if you consider a production platform to be a well pad. Each well has a surface and bottom hole location, the bottom hole locations are  targeted into different horizons in a stacked reservoir play type or sometimes even within the same layer to improve the hydrocarbon drainage (often called rate acceleration, but  does not always improve ultimate expected recovery). Metering, unit allocation, and determining liquid yield and heat content of the gas from individual wells is a straightforward process; but estimation of the drainage in the reservoir layers , especially in unconventional gas plays, is much more problematic and may require complicated numeric simulation.

 

Permalink Reply by Fuego Jones on January 27, 2012 at 12:53pm
I have a follow up question. If each horizontal well is separate, then why does Chesapeake want 640 (and larger) acre drilling units, since most horizontal wells are only permitted for about 175 acres? Thanks.
Permalink Reply by Philip Brutz on January 27, 2012 at 1:42pm

Because several wells make up a drilling unit.  Look at some of the maps, each pad has 6 or so wells on it.  That way they can efficiently drain an area from 1 pad.  They can also hold 640+ acres in "Held By Production"

Permalink Reply by Philip Brutz on January 27, 2012 at 4:02pm

Homer I have learned a great deal from you.  I hope that you continue to post.  Thank you.

Permalink Reply by Fuego Jones on January 28, 2012 at 1:21pm
Thanks Philip,
Can drillers HBP a complete 640 acre drilling unit with just one well, or do they need all six to do that?

Also, to Homer, I hope you continue to post.
Permalink Reply by Philip Brutz on January 28, 2012 at 1:29pm

They only need 1 well.

Permalink Reply by Finnbear on January 28, 2012 at 3:55pm

If the lease allows 640 acre unitization/pooling, then the answer is yes.

Permalink Reply by Farmer P on January 27, 2012 at 4:20pm

Can anyone refer me to a link that explains how they number each well (i.e. 23-17-5 3H).  I know that the fist three numbers refer to the section-township-range.  And H refers to horizontal.  But does the number prior to the H refer to the location on the drill pad and/or orientation of horizontal leg or what?

Permalink Reply by Philip Brutz on January 27, 2012 at 4:40pm

This would be a good question for Homer.

Permalink Reply by bo boboski on January 28, 2012 at 2:54am

The unit sizes are determined by the drillers. but what happens when so much of the land in eastern ohio has been leased by a dozen or so different companies with their holdings so scattered & mingled with other's holdings that half of the area wont get drilled cause your neighbor signed with so&so and your other neighbor signed with that other co. etc. etc. ?

Permalink Reply by Finnbear on January 28, 2012 at 7:54am

There are a number of O&G industry websites dedicated to just that. They advertise leaseholds that don't necessarily fit their plans and buy, sell, trade amongst themselves. Petroleum Listing Service is one such site that comes to mind.

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